We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Lululemon (LULU) Dips More Than Broader Market: What You Should Know
Read MoreHide Full Article
In the latest trading session, Lululemon (LULU - Free Report) closed at $107.24, marking a -2.35% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 1.82%. Elsewhere, the Dow saw a downswing of 1.09%, while the tech-heavy Nasdaq depreciated by 2.86%.
The athletic apparel maker's stock has climbed by 14.56% in the past month, exceeding the Consumer Discretionary sector's gain of 3.66% and the S&P 500's gain of 0.71%.
Market participants will be closely following the financial results of Lululemon in its upcoming release. The company is expected to report EPS of $0.97, down 62.55% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $2.31 billion, showing a 10.02% drop compared to the year-ago quarter.
LULU's full-year Zacks Consensus Estimates are calling for earnings of $9.55 per share and revenue of $10.5 billion. These results would represent year-over-year changes of -27.98% and -5.46%, respectively.
Investors might also notice recent changes to analyst estimates for Lululemon. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Lululemon currently has a Zacks Rank of #5 (Strong Sell).
In the context of valuation, Lululemon is at present trading with a Forward P/E ratio of 11.49. For comparison, its industry has an average Forward P/E of 16.8, which means Lululemon is trading at a discount to the group.
One should further note that LULU currently holds a PEG ratio of 2.62. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LULU's industry had an average PEG ratio of 1.93 as of yesterday's close.
The Textile - Apparel industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 194, this industry ranks in the bottom 22% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
View the Zacks #1 Rank List
Image: Bigstock
Lululemon (LULU) Dips More Than Broader Market: What You Should Know
In the latest trading session, Lululemon (LULU - Free Report) closed at $107.24, marking a -2.35% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 1.82%. Elsewhere, the Dow saw a downswing of 1.09%, while the tech-heavy Nasdaq depreciated by 2.86%.
The athletic apparel maker's stock has climbed by 14.56% in the past month, exceeding the Consumer Discretionary sector's gain of 3.66% and the S&P 500's gain of 0.71%.
Market participants will be closely following the financial results of Lululemon in its upcoming release. The company is expected to report EPS of $0.97, down 62.55% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $2.31 billion, showing a 10.02% drop compared to the year-ago quarter.
LULU's full-year Zacks Consensus Estimates are calling for earnings of $9.55 per share and revenue of $10.5 billion. These results would represent year-over-year changes of -27.98% and -5.46%, respectively.
Investors might also notice recent changes to analyst estimates for Lululemon. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Lululemon currently has a Zacks Rank of #5 (Strong Sell).
In the context of valuation, Lululemon is at present trading with a Forward P/E ratio of 11.49. For comparison, its industry has an average Forward P/E of 16.8, which means Lululemon is trading at a discount to the group.
One should further note that LULU currently holds a PEG ratio of 2.62. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LULU's industry had an average PEG ratio of 1.93 as of yesterday's close.
The Textile - Apparel industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 194, this industry ranks in the bottom 22% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.